Crypto ATMs faced heightened scrutiny in 2025 amid a surge in scams, with Americans losing $246 million in 2024 per the Internet Crime Complaint Center report—a 99% increase. Lawmakers sued operators, issued alerts targeting the elderly, and states imposed transaction limits and refund rules.
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Scam losses hit $246 million in 2024, up 99% year-over-year, with 43% from victims over 60.
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Authorities in Iowa and Washington, D.C., sued major operators like Bitcoin Depot, CoinFlip, and Athena Bitcoin over hidden fees and inadequate warnings.
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Over a dozen states passed regulations capping fees at 15-18%, limiting transactions to $2,500 daily for new users, and requiring scam alerts.
Crypto ATMs scams 2025: Elderly lose millions to fraud via kiosks. Discover lawsuits, state bans, and regulations protecting users. Stay informed on Bitcoin ATM risks today!
What Are Crypto ATM Scams in 2025?
Crypto ATM scams in 2025 involve fraudsters tricking victims, especially seniors, into using kiosks to convert cash into irreversible cryptocurrency sent to scammers. Americans reported $246 million in losses in 2024 to the Internet Crime Complaint Center, a 99% rise from prior years, with 43% affecting those over 60. Common tactics include impersonating government officials or tech support demanding immediate crypto payments.
How Do Crypto ATM Scams Target the Elderly?
Scammers pressure older Americans to withdraw cash and use crypto ATMs to buy Bitcoin or other assets, sending them to fraudulent wallets. Victims often face high fees—up to 26% undisclosed—and irreversible transactions, per complaints from Washington, D.C. Attorney General Brian L. Schwalb against Athena Bitcoin. The Iowa Supreme Court ruled operators like Bitcoin Depot retain cash in fraud cases due to user agreements verifying wallet ownership. Chris Ryan, chief legal officer at Bitcoin Depot, stated to COINOTAG, “Once that transaction is completed… that ends our involvement.” Authorities note 30,750 U.S. kiosks represent 78% of global machines, per Coin ATM Radar data as of mid-November 2025, fueling scam risks.
Crypto ATM operators argue their machines offer vital cash-to-crypto access. However, lawsuits highlight failures in prevention. In February, Iowa Attorney General Brenna Bird sued Bitcoin Depot and CoinFlip for profiting from scams via massive hidden fees. Similar claims targeted Athena Bitcoin, where warnings were deemed ineffective for terror-stricken elderly victims stuffing cash into kiosks.
Operators like Bitcoin Depot refute allegations, citing ID checks and fee refunds. They report local law enforcement damaging machines—such as Jasper County sheriffs cutting open a Texas kiosk, retrieving $32,000 Bitcoin Depot claims as theirs—creating further losses.
Frequently Asked Questions
What Caused the Spike in Crypto ATM Scams in 2025?
The surge stems from easy cash-to-crypto conversion and irreversible blockchain transactions. In 2024, losses reached $246 million, up 99%, with scams like Massachusetts jury duty fraud or fake government demands. Elderly victims, 43% of cases, struggle with wallet generation under duress, per federal reports.
Which States Regulated Crypto ATMs in 2025 to Fight Scams?
Illinois led the Midwest with laws capping fees at 18%, limiting new user transactions to $2,500 daily, and requiring registration. Over 20 states advanced bills for limits, warnings, and refunds. Spokane, Washington, banned 50 kiosks citywide, echoing New Zealand’s national outlaw.
Key Takeaways
- Record Losses: $246 million reported in 2024, 99% increase, disproportionately hitting seniors.
- Lawsuits and Alerts: Iowa and D.C. attorneys general targeted operators; Treasury’s FinCEN warned on illicit risks.
- Regulatory Momentum: States impose caps, bans; federal Crypto ATM Fraud Prevention Act proposes refunds and limits.
Conclusion
Crypto ATMs scams 2025 underscore vulnerabilities in kiosks amid U.S. dominance with 30,750 machines. While operators defend accessibility, lawsuits, state regulations, and Sen. Dick Durbin’s bill signal stronger oversight, including transaction caps and elderly protections. AARP continues advocating for nationwide guardrails to curb fraud and safeguard users investing in Bitcoin and digital assets.
